Mumbai, 1st March, 2025 – India’s retail sector is in the middle of a powerful transformation. Digital adoption, shifting consumer preferences, and a younger workforce are reshaping the industry at an unprecedented pace. As retailers navigate this dynamic environment, a new Great Place To Work® India study has identified three key factors determining their long-term success: Agility, Innovation, and Retention.

Retail remains a crucial pillar of India’s economy, contributing 10% to the country’s GDP and employing 8% of the workforce. The sector is projected to surpass $2 trillion by 2032, fueled by a rising middle class, increasing disposable incomes, and a thriving digital marketplace. E-commerce, in particular, is playing a pivotal role in this expansion, with the market expected to grow from $123 billion in 2024 to $292 billion by 2028. Digital payments, improved logistics, and increasing consumer trust have accelerated this shift, and the trend is not confined to metropolitan areas. Tier-2 and Tier-3 cities are fast becoming key drivers of demand, as rising incomes and better infrastructure fuel the next wave of retail expansion.

As the industry evolves, the study highlights a defining advantage for businesses that invest in their people. 88% of retail employees report a great workplace experience, and organizations that foster a culture of trust, fairness, and innovation are seeing tangible benefits in business performance, employee engagement, and customer satisfaction.

“Retail in India continues to evolve rapidly in 2025. Digital transformation, shifting consumer preferences, younger workforce, and changing workforce expectations are reshaping the industry. While the market dynamics will continue to fluctuate, the fundamental driver of success remains constant: Your People. Organizations that strategically prioritize their employees are best positioned to navigate this changing environment and achieve sustained growth. Workplace experience has improved over the last year, with 88% of retail employees now experiencing a great workplace, building on the momentum of 2024. This progress is no accident. Retail leaders have actively built a culture of trust, acted on employee feedback, ensured fair performance evaluations, and aligned roles with business goals. These efforts have fostered a more trusting, motivating, and fulfilling work environment that empowers employees and helps drive business success. Our latest study, capturing insights from 40 organizations and 3.2 lakh+ employee voices, identifies three key priorities shaping retail’s future: Agility, Innovation, and Retention,” said Balbir Singh, CEO, Great Place To Work® India.

Agility is becoming a defining factor in retail success. The ability to pivot quickly in response to evolving consumer demands, supply chain disruptions, and digital transformation separates thriving retailers from those struggling to keep pace. According to the study, 88% of retail employees say their teams adapt quickly, which is critical in an industry where trends shift rapidly. Businesses that invest in agility—whether through upskilling employees, streamlining decision-making, or leveraging data-driven insights—are better positioned to stay ahead of the curve. The study also found that agile organizations are more successful in attracting and retaining top talent, with 15% more employees saying their leadership excels at attracting and developing key talent.

Innovation is another cornerstone of retail growth. Companies cannot afford to remain stagnant in an industry where consumer expectations are constantly evolving. The study finds that 86% of retail employees say their organizations actively encourage new ways of doing things, fostering a culture of continuous improvement. Employees themselves are eager to contribute, with data showing that eight are ready to bring fresh ideas to the table for every two employees who feel stuck. Organizations that listen to employee insights, experiment with new strategies, and embrace digital advancements are setting themselves apart. The best-performing retailers are not waiting for change to happen but creating it.

However, despite innovation’s exciting opportunities, retention remains one of the industry’s biggest challenges. The study reveals that the retail sector has an annual voluntary turnover rate of approximately 28%, one of the highest across industries. High attrition affects service quality, disrupts operations, and increases recruitment costs. Yet, there is a straightforward solution. The data shows that career growth opportunities directly impact retention, with employees who experience career advancement being four times more likely to stay. Companies prioritizing leadership development, fair compensation, and inclusive workplaces see greater stability, stronger teams, and improved business outcomes.

“Agility ensures businesses can pivot quickly in response to shifting consumer trends. Innovation must come from every level, empowering employees to contribute ideas that drive growth. Retention is critical in an industry with high turnover; it requires building workplaces where employees feel valued, heard, and connected to a larger purpose. Focusing on this isn’t just good for people, it’s also good for business. The Best Workplaces in Retail recognize that an engaged, inspired workforce translates into more substantial customer experiences, higher productivity, and sustained growth. They invest in their people because they know the returns go beyond numbers. The call to action is clear with rising competition and evolving consumer demands: The future of the industry will be shaped by the investments we make in our people today. Organizations that prioritize talent development will not only thrive but also set the pace for innovation and excellence,” added Balbir Singh.

Retail leaders in India are making the employee experience a strategic priority in 2025. Companies that actively listen to employee feedback and implement meaningful changes see stronger workplace cultures, improved morale, and better business results. Employees given greater autonomy, encouraged to think creatively, and provided with structured career paths feel more engaged and committed to their roles. Transparent and consistent performance evaluations also play a crucial role in maintaining motivation and trust. By aligning employee roles with overall business goals, companies are fostering a culture of innovation and strengthening their customer experience.

“A great retail workplace is about trust, leadership, and a culture where people thrive. The organizations recognized as India’s Best Workplaces in Retail 2025 have set new benchmarks in employee well-being, innovation, and workplace excellence. As the industry evolves, these retailers show that investing in people is key to long-term success,” said Kumar Rajagopalan, CEO, Retailers Association of India.

The study makes it clear: when organizations focus on agility, innovation, and retention together, they see a fourfold improvement in the overall workplace experience. Employees who feel empowered to adapt to change, contribute innovative ideas, and see clear career growth opportunities are far more engaged, leading to stronger business performance and lower turnover. In a fast-paced retail environment, companies that fail to recognize the importance of these factors risk falling behind. The future belongs to organizations that invest in their people, embrace innovation, and build workplaces that inspire loyalty and excellence.